The US Commodity Futures Trading Commission is leveraging artificial intelligence to enhance its regulatory capabilities, particularly in the realms of cryptocurrency and prediction markets, according to Chairman Mike Selig's congressional testimony. Despite a significant reduction in staff under the Trump administration, with approximately a quarter of the workforce leaving since 2025, the CFTC is adapting to its expanded responsibilities.
Selig emphasized the utility of AI tools, such as Microsoft's Copilot, in streamlining workflows and facilitating investigations. When questioned about staffing declines, Selig asserted that the agency is operating more efficiently. Committee Chairman Glenn 'GT' Thompson expressed concerns about the CFTC's capacity to handle its growing workload, prompting Selig to assure that he would request assistance if needed. The CFTC is currently navigating the regulation of digital assets and prediction markets, with the Digital Asset Market Clarity Act potentially elevating its role in non-securities crypto trading.
Selig confirmed 'numerous investigations' are ongoing in prediction markets, although he did not provide specifics. The agency is adopting a 'zero tolerance' policy towards illicit activities, with Selig stating that offenders will face the full force of the law.
Representative Angie Craig argued that the CFTC's workforce is overstretched, particularly given its primary regulatory role in volatile markets. The committee's top Democrat emphasized the need for adequate staffing, funding, and statutory authority to ensure the CFTC can effectively perform its duties.
The regulator's personnel declines include the commission itself, which is currently operating with a solitary chairman. Selig was questioned about proceeding with major rules as a one-person commission, to which he replied that he cannot slow down the rulemaking process for the sake of the American people.